What is the reason for Mitsubishi Chemical's impairment loss of ¥30 billion on its UK EVOH project?

Mitsubishi Chemical Group Corp. (MCG) will record an impairment loss of approximately ¥30 billion ($188.2 million) due to significantly higher-than-anticipated construction-related expenses and project delays at its ethylene-vinyl alcohol resin (EVOH) facility in Hull, UK; these cost overruns stem from irregular construction work, complex contracts, additional safety assessments required by design and operational constraints, and rising material and personnel costs amid global inflation, leading to a revised investment plan and reduced project profitability.

When is Mitsubishi Chemical's UK EVOH manufacturing facility now expected to start operations, and how does this compare to the original timeline?

The new manufacturing facility in Hull, UK, is now expected to commence operations in fiscal 2027, reflecting a delay from its original schedule; this postponement results from project delays caused by irregular construction work, complex contracts, and additional safety assessments, all of which were identified as the project design and on-site estimates were further refined.

Mitsubishi Chemical revises investment plan for EVOH project in UK, projects impairment loss

Apr 23, 2026

Mitsubishi Chemical Group revised its UK EVOH project investment plan due to cost overruns and delays, pushing operations to fiscal 2027. Consequently, the company will record an impairment loss of approximately ¥30 billion on related fixed assets.

chemweek

2026-01-09

Mitsubishi Gas Chemical Confirms Venezuela Methanol Operations Unimpacted by US Military

2026-01-09

Mitsui Chemicals CEO outlines strategic shifts amid challenging global, environmental landscape

2026-01-20

Mitsui Chemicals launches proprietary procurement platform to strengthen supply chain disaster preparedness

2026-01-30

Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical Integrate Ethylene Facilities

2026-02-02

Mitsubishi Chemical Group to Transfer Venture Capital Business to Subsidiary